HomeMy WebLinkAbout25C - AGMT - THE LINK SHELTERREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 5, 2019
TITLE:
APPROVE SECOND AMENDMENT TO
AGREEMENT WITH MERCY HOUSE LIVING
CENTERS, INC. FOR THE LINK SHELTER
{STRATEGIC PLAN NOS. 1,6; 5,4; 5,6}
- kA� Jnr
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 161 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and the Clerk of the Council to execute a second amendment to the
agreement with Mercy House Living Centers, Inc., to authorize the expenditure of an additional
amount not to exceed $250,000 in Year 1 for the Santa Ana interim Emergency Homeless
Shelter (The Link), subject to non -substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
On September 18, 2018, the City Council approved an agreement with Mercy House Living
Centers, Inc. (Mercy House) to operate an interim Emergency Homeless Shelter in Santa Ana for
a period of one year in the amount of $3,121,700, with the option to renew for up to one
additional year. The total maximum amount of the agreement was $6 million, which included a
contingency amount of $250,000 per year for additional services and reimbursable items.
On October 16, 2018, the agreement was amended to provide additional indemnification in favor
of Mercy House related to their lease agreement for the Link Shelter site. The original agreement
was based on an estimated annual budget with a provision for $250,000 in contingency costs
each year. The first year contingency funds were for building tenant improvements to the Link
Shelter, and have already been paid to Mercy House.
The total cost of tenant improvements exceeded the original amount anticipated in the first year
budget. Therefore, Mercy House has requested that the second year contingency funds be
moved to the first year to reimburse Mercy House for the additional expenses. The agreement
expenditure will be modified as follows:
Year 1
Year 2
Total
$3,371,700
$2,628,300
$6,000,000
25C-1
Second Amendment to Agreement with Mercy House Living Centers, Inc.
February 5, 2019
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #1 - Community Safety, Objective
#6 (Enhance Public Safety Integration, communication and community outreach); Goal #5 -
Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood
vitality and livability) and Objective #6 (Focus projects and programs on improving the health and
wellness of all residents).
FISCAL IMPACT
The initial funding plan for the second year of the agreement (if necessary), was to use a variety
of sources including California's Building Homes and Jobs Trust Fund for Senate Bill 2 (Building
Homes and Jobs Act), Inclusionary Housing Fund, and the Emergency Solutions Grant (ESG)
from the U.S. Department of Housing and Urban Development. However, funds are not yet
available from Senate Bill 2 and ESG at this time.
Funds in the amount of $250,000 are available in the Inclusionary Housing Fund, Contract
Services -Professional account (no. 41718820-62300).
APPROVED AS TO FUNDS AND ACCOUNTS:
14 �y,-a�
Steven A. Mendoza Ka h n Downg, CPA F po
Executive Director Executive Director
Community Development Agency Finance and Management Services Agency
Exhibit: 1. Second Amendment to Agreement with Mercy House Living Centers, Inc.
25C-2
SECOND AMENDMENT TO AGREEMENT WITH MERCY HOUSE LIVING
CENTERS TO OPERATE AN INTERIM EMERGENCY HOMELESS SHELTER
THIS SECOND AMENDMENT to the above -referenced agreement is entered into on February 5,
2019, by and between Mercy House Living Centers, hic. ("Contractor"), and the City of Santa
Ana, a charter city and municipal corporation organized and existing under the Constitution and
laws of the State of California ("City").
RECITALS
A. The parties entered into Agreement No. A-2018-221, dated September 18, 2018, by which
Contractor agreed to administer and operate an interim, low barrier emergency homeless
shelter in the City of Santa Ana ("Agreement").
B. On October 16, 2018, the parties entered into First Amendment to Agreement No. A-2018-251
to provide additional indemnification in favor of Contractor relating to certain of Contractor's
obligations under the separate, written lease entered into by Contractor to secure the premises
for its obligations under the Agreement.
C. The Agreement remains in effect, and the parties now wish to farther amend the Agreement to
increase the amount of funds to be expended in Year 1 of the Agreement due to additional
start-up costs incurred by Contractor for improvements made to the premises.
The Parties therefore agree:
Section 3(c), Start -Up Funding and Compensation, is amended to increase the total sum to
be expended under Year 1 of the Agreement by up to $250,000, upon receipt from Contractor
of proper invoices evidencing costs for services and reimbursable items to be provided by
Contractor under the Agreement. hi the event City and Contractor agree to extend the
Agreement for any period of time beyond its original term of one year, there shall be no
contingency amount available for such extension period.
2. Except as modified by this Second Amendment, and all prior amendments, all terms and
conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the
Agreement on the date and year first written above.
ATTEST
NORMA MITRE
Acting Clerk of the Council
CITY OF SANTA ANA
SEVEN A. MENDOZA
Acting City Manager
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25C-3
APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney
By: °°
JU14N M. FUNK
Assistant City Attorney
RECOMMENDED FOR APPROVAL
STEVEN A. MENDOZA
Executive Director
Community Development Agency
MERCY HOUSE LIVING CENTERS,
INC.
Name:
Title:
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25C-4